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South Korea finance minister says corporate restructuring is key policy priority

[SEOUL] South Korea's finance minister Yoo Il Ho said on Wednesday he believes the no 1 policy priority mid-to-long term is to facilitate corporate restructuring.

Mr Yoo, who was answering questions from lawmakers, said the government will focus on creating jobs and new sources for economic growth next year.

South Korea is currently overseeing a corporate restructuring of its massive but troubled shipping and shipbuilding sectors. The government and central bank said early this month they will create an 11 trillion won (S$12.85 billion) fund to support two state-run banks most exposed to the struggling shipping and shipbuilding firms.

The finance minister also said the government is not yet considering signing swap agreements based on the Brexit vote alone. He added, however, it may leave the door open to negotiations on additional swap agreements should Britain's shock decision to exit the European Union affect the global economy over the long term.

Mr Yoo also noted that South Korean shares are showing signs of recovery from the Brexit rout.

The Kospi was up 1.3 per cent as of 0228 GMT on Wednesday.

REUTERS